& cplSiteName &

Charter Jumps Gun on TWC Restructuring

Mari Silbey
4/26/2016
100%
0%

Although Charter is still waiting on official approval to acquire Time Warner Cable and Bright House Networks, integration plans for both MSOs are already well underway.

According to a document shared by an internal source, "New Charter" sent a communication to Time Warner Cable employees about a month ago detailing plans to shift operations from select TWC and Bright House network centers to existing Charter facilities in St. Louis, Mo. and Austin, Texas. The source reports that regional TWC executives appeared to be "blindsided" by the mass email and had little reassurance to offer existing employees beyond encouraging them to explore potential job opportunities in the new locations.

Affected Network Operations Centers (NOCs) as detailed by the mass email include Time Warner Cable Inc. (NYSE: TWC) facilities in: Charlotte, N.C.; Herndon, Va.; and Syracuse, N.Y. A Bright House Networks NOC in St. Petersburg, Fla. is also among the sites affected. The overall transition is supposed to begin six months after the two Charter acquisitions close and could take as long as 18 months to complete.

Asked about the restructuring plans, a Time Warner Cable spokesperson did not deny any details, but did suggest that communications had been smoother than the recount above implies.

In a statement provided to Light Reading, the spokesperson said: "Over the last several months, we've worked closely together on integration planning and communications. The Charter team is very respectful of TWC employees and we are pleased with the process."

A Charter Communications Inc. spokesperson expressed disbelief that any executives had been blindsided by communications about the planned merger transition, saying that "the management teams of all three companies have been working in lockstep," including the communications departments.


For more on cable market trends, join us at the Video Summit, part of our upcoming Big Communications Event in Austin, Texas, May 24-25. Register now!

Corporate mergers inevitably produce friction, and it's not unexpected to see Charter planning to close certain offices to reduce redundant operations. What's interesting to see is how much of the plans to consolidate MSO facilities appear to have been decided and widely communicated internally before regulatory approval was virtually assured.

The US Department of Justice approved the Charter deals with conditions yesterday at the same time that Federal Communications Commission (FCC) Chairman Tom Wheeler announced he is also recommending approval with conditions in place. The full Commission still has to vote on the matter, but with Wheeler's endorsement, approval by the FCC is expected. The final hurdle for Charter is likely to be overcome on May 12 when the California Public Utilities Commission hands down its regulatory decision. As with Chairman Wheeler, a state judge in California has already recommended approval with conditions. (See Wheeler Recommends Charter Deals.)

— Mari Silbey, Senior Editor, Cable/Video, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
5/3/2016 | 10:49:03 AM
Re: I wonder if the SEC will have anything to say
Yes, it is a bit curious that communication among the entities was not handled better. Although, it's not clear that it was as confusing as may have been reported, jumping the gun before the regulators's approval must as been embarassing after it was reported.
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
4/26/2016 | 1:30:30 PM
Re: I wonder if the SEC will have anything to say
Mari,

The aren't exactly acting and this would be a super gray (or grey) area of the law.  The companies are supposed to act independently before the deal actually closes via the shareholder vote.   Charter hasn't given anyone an order - they have provided information to what will become (if the vote passes) new employees.  

The theoretical problem happens if the vote fails.  A number of people will have quit by the time the deal closes.  That means that it will be difficult for TWC to execute its business and make people more like to vote to merge.

The people at Charter may have considered it a kindness.  A type of early severence.  You know your job is going away and so "head's up go get a new one".  Lots of G&A people will be facing the same challenge.

seven

 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
4/26/2016 | 11:47:10 AM
Re: I wonder if the SEC will have anything to say
From the outside, this looks poorly handled. I imagine it looks even worse from the inside for TWC employees. Anyone who's been involved on the short end of a corporate merger can empathize. The situation is bleaker when the acquirer is somewhat unsophisticated.
msilbey
50%
50%
msilbey,
User Rank: Blogger
4/26/2016 | 11:26:40 AM
Re: I wonder if the SEC will have anything to say
brooks7- I wonder this too, though it doesn't appear that Charter is worried about acting ahead of approval. 
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
4/26/2016 | 11:14:45 AM
I wonder if the SEC will have anything to say
 

There are limits to how an acquirer can act before a deal closes.  Integration plans are supposed to be developed, but it could be argued that this doesn't allow TWC to act as an independent company.  People will leave critical positions based on the information and the vote still needs to happen and it can fail.

seven

 
From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom on what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
LRTV Custom TV
Nokia Introduces Virtual Service Router for More Rapid Service

4|6|17   |     |   (0) comments


James Cumming, product line manager for virtualized service routers at Nokia, demonstrates how the virtual router based off the Nokia ecosystem changes the network function experience.
LRTV Custom TV
The Keys to SD-WAN Success

4|6|17   |     |   (0) comments


Versa Networks CEO Kelly Ahuja talks about the key requirements for service provider-managed SD-WANs.
LRTV Custom TV
Intel & Cisco on Joint 5G Solutions

4|5|17   |     |   (0) comments


Dave Ward, SVP and CTO of Cisco, is joined by Sandra Rivera, corporate VP and general manager of network platforms group of Intel, on the revolutionary 5G technology that changes networking and computing fundamentally.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Time for a Telecom Reboot
Steve Saunders, CEO and founder, Light Reading, 4/19/2017
Comcast Ready for Clash With Hulu
Mari Silbey, Senior Editor, Cable/Video, 4/18/2017
Unlicensed: It's What's Next for US Mobile Operators
Dan Jones, Mobile Editor, 4/19/2017
Pai Picks Up Deregulatory Pace
Alan Breznick, Cable/Video Practice Leader, Light Reading, 4/20/2017
Verizon CEO Comments Feed Merger Frenzy
Carol Wilson, Editor-at-large, 4/18/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
Now That's an Ad Campaign Click Here
Meerkats to the rescue!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.